The Pricing of the SATS Bull and Bear Stocks

Research output: Contribution to journalArticlepeer-review


Two index-linked stocks were issued by the South African Transport Services in November 1986. They offer the investor fixed coupon payments, but their redemption values will be determined by the level of the JSE Index on April, 1990. The two stocks thus have an unknown maturity value. The paper analyses the equilibrium prices of the stocks, using option pricing equations. It derives pricing equations for both stocks, and then demonstrates the actual application of the model.
Original languageEnglish
Pages (from-to)1-9
JournalJournal of Social, Political, and Economic Studies
Issue number3
StatePublished - 1988


Dive into the research topics of 'The Pricing of the SATS Bull and Bear Stocks'. Together they form a unique fingerprint.

Cite this